Abu Sa'id al-Khudri (Allah be pleased with them) met Ibn 'Abbas (Allah be pleased with them) and said to him: What do you say in regard to the conversion (of commodities or money) did you hear it from Allah's Messenger (ﷺ), or is it something which you found In Allah's Book, Majestic and Glorious? Thereupon Ibn Abbas (Allah be pleated with them) said: I don't say that. So far at Allah's Massenger (ﷺ) is concerned, you know him better, and to far as the Book of Allah to concerned, I do not know it (more than you do), but 'Usama b. Zaid (Allah be pleased with him) narrated to me Allah's Messenger (ﷺ) as having said this: Beware, there can be an element of interest in credit.
The Book of Musaqah - Sahih Muslim 1596 d
This narration from Abu Sa'id al-Khudri and Ibn 'Abbas (may Allah be pleased with them) addresses the fundamental prohibition of riba (usury/interest) in financial transactions. The exchange demonstrates the Companions' meticulous approach to religious knowledge, verifying whether rulings come directly from the Prophet (peace be upon him) or the Qur'an.
Scholarly Commentary
Ibn 'Abbas displays exemplary scholarly humility by acknowledging the limits of his knowledge and directing the questioner to a more authoritative source - Usama ibn Zaid who directly heard the Prophet's teaching. This establishes a clear chain of transmission (isnad) for the legal ruling.
The Prophet's statement "Beware, there can be an element of interest in credit" (Arabic: "Alā inna fī al-nasī'ati riban") highlights that deferred payment transactions carry inherent risk of riba. This applies particularly to sales where the same commodity is exchanged with delay, or when credit transactions involve unequal amounts of the same type of goods.
Legal Implications
This hadith forms the basis for prohibiting all forms of credit-based interest, whether in personal loans, commercial transactions, or banking operations. Classical scholars derived from this that any increase stipulated in exchange for deferment constitutes riba al-nasi'ah - the interest of delay.
The warning applies to both the lender and borrower, as the Prophet cursed the one who gives interest, takes it, records it, and witnesses it. This comprehensive prohibition aims to establish economic justice and prevent exploitation in financial dealings.